RBC Capital analyst Walter Spracklin maintains $Norfolk Southern (NSC.US)$ with a buy rating, and adjusts the target price from $267 to $272.
According to TipRanks data, the analyst has a success rate of 65.6% and a total average return of 16.7% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Norfolk Southern (NSC.US)$'s main analysts recently are as follows:
The recent increase in Q3-to-date carload growth, which is now up 7.5% year-over-year, surpasses the earlier projections and supports the expectation of an improved operating ratio, anticipated to be around 64.6%. This sequential progress is attributed to the balance between higher volumes and the potential impacts of lower yields/mix. The anticipation of Norfolk Southern accelerating earnings is underpinned by productivity enhancements and a strategic emphasis on volume expansion.
The analyst notes that there is a close watch on the macroeconomic environment, particularly in light of cautious statements from companies indicating that the industrial outlook might be deteriorating compared to previous expectations. The expectation is that Norfolk Southern's new operations management will implement significant enhancements, which should translate into robust earnings per share growth extending into 2027. This anticipated improvement is believed to not be currently reflected in the share price.
Note:
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